Equity Bank Kenya anticipates making hundreds of millions of shillings through the introduction of a transaction confirmation alert, which would cost Sh2.26.
On Monday, the lender, which has over 10 million customers in the country, implemented new pricing for each short message service (SMS).
The introduction of a Sh240 yearly debit card fee in 2021 is expected to increase the lender’s non-interest income. Card fees could earn the bank up to Sh2 billion each year if the majority of issued cards are actively utilised.
“We have introduced a standard SMS charge of Sh2.26, effective 24th April. The charge applies to mobile and online transaction confirmation alerts,” the bank said in a notice to customers.
Equity’s total non-interest revenue rose from Sh22.8 billion to Sh27.5 billion in the fiscal year that ended in December. This includes fees and levies that are not tied to loans, which went from Sh6.7 billion to Sh7.5 billion.
Other banks that charge customers to get message warnings include Co-operative Bank of Kenya (Sh42) and Absa Bank Kenya (Sh5). At the beginning of the year, commercial banks resumed fees for bank-to-mobile transactions, which is anticipated to increase profits.
The CBK temporarily halted the charges in an effort to promote cashless transactions and lower the risk of Covid-19 infections.
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